(BQ) Chapter 17: Additional topics in variance analysis. In this chapter, we discuss additional variances to illustrate some of the ways the basic variance analysis model can be extended and adapted to specific circumstances. The basic principles are exactly the same as those we discussed in chapter 16. | © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamentals of Cost Accounting, 4th edition Lanen/Anderson/Maher Additional Topics in Variance Analysis Chapter 17 Chapter 17: Additional Topics in Variance Analysis In this chapter, we discuss additional variances to illustrate some of the ways the basic variance analysis model can be extended and adapted to specific circumstances. The basic principles are exactly the same as those we discussed in Chapter 16. Learning Objectives LO 17-1 Explain how to prorate variances to inventories and cost of goods sold. LO 17-2 Use market share variances to evaluate marketing performance. LO 17-3 Use sales mix and quantity variances to evaluate marketing performance. LO 17-4 Evaluate production performance using production mix and yield variances. LO 17-5 Apply the variance analysis model to nonmanufacturing costs. LO 17-6 Determine which variances to investigate. After studying this chapter you should be able to: Explain how to prorate variances to inventories and cost of goods sold. Use market share variances to evaluate marketing performance. Use sales mix and quantity variances to evaluate marketing performance. Evaluate production performance using production mix and yield variances. Apply the variance analysis model to nonmanufacturing costs. And, determine which variances to investigate. Profit Variance Analysis LO 17-1 Explain how to prorate variances to inventories and cost of goods sold. Most companies close variances to Cost of Goods Sold. Other companies prorate the variances. LO 17-1 If a company closes the variances to Cost of Goods Sold, Cost of Goods Sold increases due to unfavorable variances. If the variances are favorable Cost of Goods Sold decreases. Profit Variance Analysis Sales . | © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamentals of Cost Accounting, 4th edition Lanen/Anderson/Maher Additional Topics in Variance Analysis Chapter 17 Chapter 17: Additional Topics in Variance Analysis In this chapter, we discuss additional variances to illustrate some of the ways the basic variance analysis model can be extended and adapted to specific circumstances. The basic principles are exactly the same as those we discussed in Chapter 16. Learning Objectives LO 17-1 Explain how to prorate variances to inventories and cost of goods sold. LO 17-2 Use market share variances to evaluate marketing performance. LO 17-3 Use sales mix and quantity variances to evaluate marketing performance. LO 17-4 Evaluate production performance using .
